The business production index for the state jumped from 3.5 to 12.9 which indicates faster growth in manufacturing.
The report has more than a modicum of influence nationwide, as manufacturers in Texas produce 9 percent of the nation's manufactured goods -- the second highest in the United States behind California.
In January, the new orders index for Texas manufacturing concerns climbed 13 points to 12.2, the highest reading since March 2011, the Fed said.
Readings more than zero indicate growth, while readings less than zero indicate contraction.
The shipments index for firms in Texas rose by nine points to 21.9. The general business activity index rose from 2.5 to 5.5.
The employment index climbed from less than zero to 8.7, as 20 percent of employers indicated they were hiring while 11 percent indicated they were laying off workers.